Marketing Strategy of Ferrero Rocher and Milka

Do you adore the delicious and charming taste of Ferrero and Milka sweets? The French and Czech companies, known as Ferrero Rocher and Milka from Kraft Foods, has sold chocolates for more than 11.4 Billion Euros and 61.4 Million Dollars in 2019, respectively. The companies made their products available in more than 170 countries globally. Are you already curious about the key to the success of the companies? I propose to go through Marketing Strategies, find out their brand archetypes, make SWOT Analysis, and explore the target segment of Ferrero Rocher and Milka.

Let’s commence with the Mission Statement of Ferrero Rocher.

Mission Statement

High quality, crafted precision, product freshness, careful selection of the finest raw materials, respect and consideration for our customers.

The mission statement of company Ferrero Rocher focuses on customer relationships to satisfy their needs in terms of quality, taste, freshness, design, and innovation.

Now, it’s time to refer to marketing strategies Ferrero Rocher uses.

To do so I suggest having a look at the image below.

The image is from the Instagram Official Account of Ferrero Rocher, where the page has a significant number of followers. The image is charismatic and leaves the audience with different ideas related to the profound meaning of it.

I guess the Ferrero pie fosters the musician who plays the guitar. The little nutty chocolate ball triggers addiction to this loveliness. It impacts positively on the user’s mindset exerting creativity and prompting to invent something new or have a fascinating performance. The influence it can have on people guides me to think that Ferrero belongs to the Magician Brand Archetype.

What do we know about the archetype? Let’s discuss it further.

Desire: knowledge about the way the universe functions

Aim: strive for dreams to be achieved

Strategy: evolve visionary and live it up

Levels of the Magician

Level 1:  mystical experiences

Level 2: supernatural moments of alteration

Level 3:  the experience of performance

Level 4: luminous art works flowing from visionary to reality

Magician Brand Archetype is a favorable one for the company if:

• The product is influential
• It pledges to convert the user psychologically
• The pricing is at medium to higher
• It is a user-friendly product

Brand Archetypes. Why do we need them in practice?

All of us know that many companies have problems in presenting their key values and attitudes. Sometimes our messaging leads to misunderstanding or it does not represent what we aimed to say in reality. Here of course the importance of the brand archetypes is very crucial. How to create a good company culture?  What are its values?

Here are some questions that need to be answered properly. “8 steps to a complete archetypal branding” e-book tells us a lot.  We have written a book that goes deeper in these notions and reveals archetypes in specific ways. Just uncover the brand archetypes with “8 steps to a complete archetypal branding” e-book.

Now, the time for SWOT Analysis arrived. Here we go.

Strengths of Ferrero Rocher

High Quality and Taste: Ferrero offers its customers product of high quality and delicious taste. An important feature is that the product of the company is of the same taste throughout the world. In addition, nice packaging of the chocolate balls makes them more attractive and desirable.

An Option Of Gifting: Ferrero is a perfect option for making a gift for close people. It has varying sizes of 3, 12, 18, 24 pieces of chocolates which gives an opportunity for consumers to choose the size and price.

Health Issues: In many societies, the chocolates are perceived to be harmful for health because of chemical ingredients the product contains.

High price: The chocolate servings are priced higher compared to other market competitors of the industry. It maintains it’s premium class but pricing has negative affection on the annual revenues.

Opportunities

New tastes: Producing and manufacturing new tastes of the product will enhance financial turnover of the company. People sometimes need updates in terms of newness.

Advertising and E-commerce: The company can invest more in commercials and advertisements, as recently E-commerce has been growing considerably.

Threats

Fake Imitations of the Brand: Many companies imitate Ferrero’s products with lower prices. It can affect the business negatively as a huge number of people may launch to buy the fake ones with more affordable prices.

Competitors: Ferrero is not the market leader in chocolate sweets’ industry. It has powerful competitors as Lindt, Nestle, Hershey’s, etc.

Now let’s go through the segmentation strategy of the Ferrero Rocher

To do so, let’s look at the commercial of the brand.

It seems you saw the commercial several years ago, once you were getting acquainted with the brand. You see, some people spend their time enjoying the memorable meeting. They value the moments that are a source of happiness and fun. Suddenly, magic occurs, after which Ferrero chocolate balls appear on the scene. It was the only thing that did not allow the evening to be perfect.

You see, the woman enjoying every single moment of indulgence of Ferrero is seeking for pleasure and charm in everything. Not only she but also others who tried it later were of the same opinion. This definition shows that Ferrero has chosen Carpe Diems as their target audience

Who are Carpe Diems? What about their lifestyle and Values, Shopping Preferences, etc.?

Lifestyle and Values

They do appreciate extremely much spending time with friends. Going out and having fun is the core desire of their life. They give much importance to career advancement because they consider it a source of freedom addressing financial independence. Carpe Diems are adventure seekers, mainly like challenges in sports and traveling. Furthermore, they are perfect Internet users, which is an important aspect of their life.

Shopping Preferences

Carpe Diems prefer quality above quantity, which is coming from their high standard of living. They are loyal to the brands and boutiques they are used to visit and purchase items from. They enjoy from shopping and spending on goods they would like to have if they are the best dials.

Interesting Facts about Carpe Diems

• They like reading magazines related to news of their favorable articles, like sport, cars, stars, etc.
• Carpe Diems are interested in participating in cultural exhibitions, like visiting museums
• They like reading books whenever they have some available time, mostly biographies.
• As their looks are extremely essential, they are trying to keep up with the latest trends and fashion.

16 Personalities (why do you need them in your business?)

One of the main secrets of the success of Ferrero Rocher- Right targeting.  Carpe Diems are one of the most powerful and solvent segments in 16 personalities. Just like Ferrero Rocher you should choose the right target (ideal buyer persona) for your business as well and in this context, you should research all 16 Personalities, 16 types of clients that you may meet during your daily business and marketing activity.

Here is the book “16 Personalities” (e-book version),which includes all these types of clients. This book will give you a key to the heart of your dream client. By recognizing all 16 Personalities, you will easily find a target customer that matches your brand.

It’s high time to explore Milka Brand. Let’s launch with Mission Statement of the company

 Mission Statement

“We believe a little Milka chocolate can go a long way to making the world a more tender place” 

The statement of the brand clearly describes its purpose. It is to make the products available globally and increase sales as much as it is possible. However, the company does not deny the focus to give people pleasant feelings in the aid of their products.

Let’s move into investigation of company’s marketing strategy.

To do so, I suggest to have a look at this image

What did come to your mind first when you looked at this image? The simplicity, cleanness, organic taste, trust towards the brand. The Facebook Post of Milka official account sends a message like you see, we are using only organic products and ingredients in order to produce the chocolates.

The cow shown in the post is a kind of proof that goods lack chemicals and they are based on natural ones. The description of the post tends me to think that the company belongs to the Innocent Brand Archetype.

 Are you already curious about knowing its characteristics?

You can read them below.

Desire: to feel the paradise

Goal: to experience happiness

Strategy: conduct actions without mistakes

Levels of Innocent

Level 1: inspiration of purity, morality and goodness

Level 2: simplicity, trustfulness, and idealism

Level 3: recreation, revival, renewal

Level 4: Innocence comes from inner integrity and experience, and it has nothing to do with outer influence.

Innocent Brand Archetype is a promising identity for a brand if:

• The products are associated with childhood, simplicity, honesty and morality
• Goods function as healthy and pure ones
• Pricing is from moderate to low level

Brand Archetypes. Why do we need them in practice?

Our communication strategy may have multiple messaging approaches. But there is some logic that unifies all these and it is called communication based on the archetypal branding. A company may have many messages, but they do not have something in common. For example “Do everything easily”, “Go ahead and be powerful” or Dig deeper and be experienced”.

These 3 quotes have different goals and bring different subconscious effects. One is about Being a Hero, another is about gaining more experience. These are 2 different directions of messaging and the logics of Brand archetypes bring more uniqueness and clearness here. Just read the book “8 steps to a complete archetypal branding” and you will have more experience in communication based on archetypes.

Our communication strategy may have multiple messaging approaches. But there is some logic that unifies all these and it is called communication based on the archetypal branding.

A company may have many messages, but they do not have something in common. For example “Do everything easily”, “Go ahead and be powerful” or Dig deeper and be experienced”.

These 3 quotes have different goals and bring different subconscious effects. One is about Being a Hero, another is about gaining more experience.

These are 2 different directions of messaging and the logics of Brand archetypes bring more uniqueness and clearness here. Just read the book “8 steps to a complete archetypal branding” and you will have more experience in communication based on archetypes.

Now, it’s time conduct SWOT Analysis of Milka

Strenghts

Strong Brand Image: The products are of strong brand image, as Milka is a produced by Mondelez International Inc, which also deals with the production and manufucturing of brands known as Alpen Gold, Oreo, Barni, Tuc, etc.

Portfolio Varieties: Milka has a wide range of products, which is an opportunity for consumers to choose.

Strong Distribution: The company has adjusted to every single society and culture. This is the main reason of its strongly implemented distribution channels throughout the world, denying whether it is a rural part of the country or an urban one.

Weaknesses

High Sugar Content: Even though the products are based on natural ingredients, it contains a high volume of sugar. Its content is dependent on the preferences of a particular country. For example, in the Indian market, there is manufactured Milka goods with half percentage of sugar.

Lack of stores: As E-commerce experiences a boom recently, there is a lack of online shops of Milka. Mainly, there is no online boutique of the brand in France. Furthermore, there are no dedicated stores in the company. 

Price Depending On Row Materials: As the price of goods produced by Milka depends on the costs of raw materials, it is challenging in terms of becoming higher in some periods and decreasing the demand. 

Opportunities

Low sugar goods: Recently, health awareness among human beings has been enhanced vitally. The company can consider the production of new types of chocolates that contain a low volume of sugar or no sugar, attracting an enormous number of consumers who were avoiding purchasing such products. 

Extention of Market: There is still a room in the E-commerce field that the company can intrude on. The investment and development of such a project will definitely sum up with substantial financial turnouts.

Regular Advertisements and Commercials: As there are many competitors, an ideal variant of keeping people’s awareness through the product is to continually advertise and help them to get to know about updates.

Threats

Tough competitors: Ferrero Rocher, Lindt, Nestle, Mars, etc. are real competitors in the chocolate industry. Every year the competition is becoming keener, under different circumstances.

Increasing Health Awareness: Nowadays, people give much worth to health and are fond of being in good physical shape. Dieticians and other specialists are investing in such programs to develop health awareness among people. Thus, a vast number of people will reject using such goods anymore or at least rarely.

Now, the time has come to find out what type of segment has Milka opted as target audience.

To come up with the answer, I suggest to watch Malka’s commercial.

You see, a happy family in the commercial enjoying the weekend together by flying on a parachute. An inseparable part of their trip is the Milka Chocolate bar.

The woman takes a piece of the bar and rests to her kids as she considers it a good product to be used by them. However, all this was her imagination. She was at work and had escaped in her dreams for a moment while enjoying Milka.  

The subconscious actions of the woman in the commercial guides me to come over with conclusion, that the target segment of Milka are Actualizers.

Who are Actualizers?

Lifestyle and Values

Actualizers value the role of the family in their life. It is more than essential for them to make sure that everything is on the right track in their family. They give proper attention to their children.

It is vital to make them fed with organic and nutritious food, achieve success in education and career, read many books, gain knowledge, be intelligent, etc. Not only their children, but also they are intellectual and modern. They keep the growing pace of technological advancement, are enrolled in international events, and show interest in art and culture. 

Shopping Preferences

Actualizers usually have a practical look. They like purchasing clothes, not for style but their comfortability. They are good at managing money and go shopping with a devised plan of needed items and stores in advance. The target segment is used to buy products from one store. They try to complete the requests of their kids, but only the ones they think are a good option for the kids.

Interesting Facts about Actualizers

• They like spending evenings and time in general with their family members at home.
• They frequently go a restaurant for having a dinner, theater, cinema, concerts, etc.
• Actualizers are environmentally cautious. They are mostly concerned about the air pollution issue. Moreover, they are worried about crime and the negative consequences of such incidents.

So much about Ferrero Rocher and Milka, applied marketing strategies, SWOT Analysis and investigation of target segments and brand archetypes. We hope the blog post was a helpful and efficient one for you. Check out the main page of our website for more posts like this.